Barter Aids Startups, Regardless Of One�s Business
55% of last year�s business startups opened their doors with $10,000
or less in capital, underscoring the fact that undercapitalization
is the norm for the new business owner.
knowledgeable entrepreneur, whether new or experienced, the use of
barter can play a significant, positive role in getting a business
of the ground. Here�s a story about how one company used barter to
build and expand its operations.
and Enrique Landa, the co-founders of San Francisco-based
launched their firm in the fall of 2004.
corduroy-pants business was opened with $8,000 between them. Couple
some money with a large amount of desire and creativity, and some
pretty amazing things can happen.
In a short
period of time they�ve not only sold 3,000 pair of pants that retail
for $66 to $88 each, but they�re in the black, without any debt,
according to Lindland.
The two have
kept their overhead to a minimum through the use of barter,
convincing others to provide needed services for pants. Web design
work, for example, was obtained by trading pants and several
home-cooked meals. The balance, approximately 10% of the bill, was
This fall the
company has scheduled ads in the Harvard Lampoon in exchange
for 35 pairs of pants. The owners, both in their twenties, astutely
traded with yet another group, which, Lindland exclaims, �needed us
almost as much as we needed them.� Who might this group be?
business-school prospects, a hungry group of students looking to
spruce up their job applications. �They will work hard and work for
less so they can list Cordarounds as part of their business
experience,� explains Lindland.